Life Insurance

Patti Nash

Objectives

• Identify Different Methods of Life Insurance Calculations

• Identify and Set Up Rule and Validation Forms

• Review Employee Deduction Maintenance

• Identify Imputed Income Functionality

• Review Life Insurance Processing

Agenda

• Life Insurance Methods

• Rule and Validation Tables

• Application Form

• Life Insurance Process

• Life Insurance Reports

Life Insurance Methods

• Coverage equals factor times annual salary (calc rule 50)

• Coverage equals factor times prior year-to-date W2 earnings (calc rule 51)

• Coverage equals fixed amount based on annual salary range (calc rule 52)

• Coverage equals fixed amount based on age range (calc rule 53)

Method One

• Coverage equals factor times annual salary (calc rule 50)

• PTRBDCA• Calc rule 50

• Deduction type 15 is taxable for employee

• Deduction type 16 is taxable for dependent

• Deduction type 25 is non-tax for employee

• Deduction type 26 is non-tax for dependent

Method One Continued

• Amount indicators 1-4 O,S,S,S Respectively

• Option Codes• 1 should be O or N

• 2-4 should be N

• 5 is always S

• PTRBDCA• Create code for imputed income-calc rule 54 with

deduction type 13

Method One Continued

• PTRLIFI• Identify employee or institution paid

• PTRPREM• Age ranges

• Premium rate per $1,000 worth of coverage

• PTRINST

• PTRGTAX

• PTRBDFQ

• Include on tax deductions for I50

• PTRBCAT

Method One Continued

• PDADEDN• Assign deduction to employee

Method Two

• Coverage equals factor times prior year-to-date W2 earnings (calc rule 51)

• PTRBDCA• Calc rule 51

• Deduction type 15 is taxable for employee

• Deduction type 16 is taxable for dependent

• Deduction type 25 is non-tax for employee

• Deduction type 26 is non-tax for dependent

Method Two Continued

• Amount indicators 1-4 O,S,S,S Respectively

• Option Codes• 1 should be O or N

• 2-4 should be N

• 5 is always S

• PTRBDCA• Create code for imputed income-calc rule 54 with

deduction type 13

Method Two Continued

• PTRLIFI• Identify employee or institution paid

• PTRPREM• Age ranges

• Premium rate per $1,000 worth of coverage

• PTRINST

• PTRGTAX

• PTRBDFQ

• Include on tax deductions for I50

• PTRBCAT

Method Two Continued

• PDADEDN• Assign deduction to employee

Method Three

• Coverage equals fixed amount based on annual salary range (calc rule 52)

• PTRBDCA• Calc rule 52

• Deduction type 15 is taxable for employee

• Deduction type 16 is taxable for dependent

• Deduction type 25 is non-tax for employee

• Deduction type 26 is non-tax for dependent

Method Three Continued

• Amount indicators 1-4 O,S,S,S Respectively

• Option Codes• 1 should be O or N

• 2-4 should be N

• 5 is always S

• PTRBDCA• Create code for imputed income-calc rule 54 with

deduction type 13

Method Three Continued• PTRLIFI

• Identify employee or institution paid

• PTRCOVR• Enter salary ranges and coverage amounts

• PTRPREM• Age ranges

• Premium rate per $1,000 worth of coverage

• PTRINST

• PTRGTAX

• PTRBDFQ

• Include on tax deductions for I50

• PTRBCAT

Method Three Continued

• PDADEDN• Assign deduction to employee

Method Four

• Coverage equals fixed amount based on age range (calc rule 53)

• PTRBDCA• Calc rule 53

• Deduction type 15 is taxable for employee

• Deduction type 16 is taxable for dependent

• Deduction type 25 is non-tax for employee

• Deduction type 26 is non-tax for dependent

Method Four Continued

• Amount indicators 1-4 O,S,S,S Respectively

• Option Codes• 1 should be O or N

• 2-4 should be N

• 5 is always S

• PTRBDCA• Create code for imputed income-calc rule 54 with

deduction type 13

Method Four Continued

• PTRLIFI• Identify employee or institution paid

• PTRPREM• Age ranges

• Premium rate per $1,000 worth of coverage

• PTRINST

• PTRGTAX

• PTRBDFQ

• Include on tax deductions for I50

• PTRBCAT

Method Four Continued

• PDADEDN• Assign deduction to employee

Life Insurance Process

• PTRLIFE• Update dates per institution practice

• PDPLIFE• Run prior to the first payroll of the month

• Only run it once per month

• PDRLIFE• Life insurance reporting reflecting premium payments